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Silver Standard (SSRM) Q1 Earnings Top Estimates, Shares Up

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Silver Standard Resources Inc.’s (SSRM - Free Report) shares have gained 6% since the company reported better-than-expected first-quarter 2021 earnings on May 6. Adjusted earnings per share for the reported quarter came in at 47 cents, beating the Zacks Consensus Estimate of 40 cents. The bottom-line figure surged 147.3% from the 19 cents reported in the prior-year quarter.  Increase in gold equivalents sold, higher average realized prices for gold and silver, and lower costs drove earnings during the quarter.  

Including one-time items, earnings came in at 24 cents per share compared with the prior-year quarter’s 19 cents.

Operational Update

Silver Standard’s total revenues surged 123.2% year over year to $366 million during the first quarter. The top-line figure surpassed the Zacks Consensus Estimate of $346 million.

Production shot up 83% year on year to 196,094 gold equivalent ounces in the reported quarter. Gold equivalents sold soared 92.4% to 201,494 ounces in the quarter on a year-over-year basis.

Average realized gold price was up 12.6% to $1,798 per ounce from the year-ago period. Average realized silver price was $26.02 per ounce in the quarter, reflecting a year-over-year jump of 49%.

Cash cost per gold equivalent ounce declined 19.2% year over year to $665 during the first quarter. All-in sustaining costs (“AISC”) per gold equivalent ounce sold decreased 20.3% to $1,004 in the reported quarter from the prior-year quarter’s $1,261.

Income from mine operations skyrocketed 230% year over year to $148 million during the March-end quarter. Gross margin was 40% in the reported quarter compared with the year-earlier quarter’s 27%. Operating income was $128 million, up a whopping 265.7% from the year-ago quarter’s $35 million.

Financial Results

As of Mar 31, 2021, cash and cash equivalents were $866 million, up from $861 million as of Dec 31, 2020. The company generated $145 million of cash flow from operations in the first quarter compared with the year-ago quarter’s $64 million.

Price Performance

Shares of Silver Standard have gained 2.7% over the past three months, compared with the industry’s growth of 28.9%.


Zacks Rank & Stocks to Consider

Silver Standard currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include ArcelorMittal (MT - Free Report) , Celanese Corp. (CE - Free Report) and Dow Inc. (DOW - Free Report) .  All of these stocks flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 179% in the past year.

Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 90% over the past year.

Dow has an estimated earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 75% in a year’s time.

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Silver Standard Resources Inc. (SSRM) - free report >>